I have a problem with this book, A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation.

It irritates me to no end that Richard Bookstaber made his money first at Salomon Brothers and then at a major hedge fund that goes out of its way to block hedge fund regulation of any form.

His career and fortune was made working at firms that use a lot of leverage and highly complex investment strategies to make money. And he was in charge of risk.

But now that he has become a long/short equity manager, a relatively simple strategy that does not require much leverage, he is saying leverage and complexity are bad things.

I find the whole thing a little disingenuous. Which is not to say the author does not make some valid observations.


WordPress database error: [Table './dailyspeculations_com_@002d_dailywordpress/wp_comments' is marked as crashed and last (automatic?) repair failed]
SELECT * FROM wp_comments WHERE comment_post_ID = '1507' AND comment_approved = '1' ORDER BY comment_date




Speak your mind


Resources & Links